four square

FOUR SQUARE

All criticism aside, foursquare has a big opportunity based on its business model and on the fact that is developing an interactive database that at this point nobody has and that it will be extremely powerful to link businesses and customers, it will become a very powerful marketing service supplier. This powerful database has the potential to become a social network as well.
By providing general information to the user, at this point, food guides such as SAGAT and other brands like MTV are advertising themselves in foursquare in order to establish an interactive communication with all their potential customers. With foursquare as a tool, this companies reach their customers everywhere and companies get daily information about their customers habits, return visits, schedules, feedback, etc. Although the common citizen or the user of foursquare does not have to pay, foursquare is getting its revenues from other companies that are joining their database and that are launching specific and strategic campaigns thru foursquare buying from it marketing services. Well known brands like Pepsi had already paid for their services. In legal terms once the user accepts to join foursquare he accepts that most of his information might be shared. Opportunities such as giving rewards thru foursquare or developing royalty programs for customers are some of the marketing services this company can provide. However local advertisement in the net will continue to be an alternative to gain revenues.
As a user, I believe they still have some challenges because the information and tips you download at this point is usually uploaded by the same owners of the same restaurants, shops, hotels, etc. which jeopardizes objectivity. (for more legal information about foursquare http://foursquare.com/legal/privacy)
In the long term and once the network of users grows and consolidates four square as a social network, Four square will have the leverage to negotiate with big and small companies marketing services for their customers. Nevertheless, four square has to be aware and become responsible to handle properly the newest most powerful database